NSW exposed in mining quick fix
The move was foiled by incensed Greens MP Jeremy Buckingham, who charged that the Liberal government was merely patching up the mess created by the previous Labor government and its disgraced powerbroker Eddie Obeid, rather than undertaking proper reform.
"The only reason this bill is not going through tonight is that this government got caught sneaking through the bushes taking out the trash," Mr Buckingham said during a fiery exchange with Mining Minister Chris Hartcher at 9.40pm.
"I'm sure that the honourable members [of the NSW upper house] have not had the opportunity to consider this bill. This is a serious matter," Mr Buckingham said as the house was called to order.
The effect of the proposed Mining Amendment (Development Consent) Bill would be to end a lawsuit against the government (and Newcrest, which has joined the action) over the validity of mining leases at Australia's biggest goldmine, Cadia, near Orange.
Gold & Copper Resources (GCR), a small explorer controlled by Brian Locke, has brought a suite of cases against the government. And despite Newcrest saying the lawsuits had no merit, GCR notched up a small win earlier this year, battering the goldminer's share price in the process. In a shock decision in May, the NSW Land and Environment Court quashed an exploration licence held by Newcrest.
The licence application in question was made during the stewardship of disgraced mining minister Ian Macdonald in 2008 and renewal was granted in 2011.
The licence in question, EL3856, encompassed about 70 per cent of Newcrest's wholly owned exploration area in NSW and it surrounds its Cadia Valley Operations mining leases. Cadia, the biggest underground mine in Australia, contains about $200 billion in gold. Newcrest has spent $2 billion in its development.
The wisdom of legislators in overriding the judiciary in favour of a large corporation late in the evening hardly lends credibility to mining in NSW.
Further, parliamentary sources said on Wednesday night that the government had sought to garner support for its bill by saying there could be hundreds of job losses at Cadia if it was not passed.
"Using the people of the central west - to say that their jobs are at stake - is not true," Mr Buckingham said in an attack on Mr Hartcher for using jobs as a pretext for the bill. "If GCR did not have a legitimate case, why is this bill necessary? ... This bill cleans up the mess of Eddie Obeid."
Mr Obeid was mining minister when some of the Cadia approvals were made. Although there is no evidence that anything was untoward during the Obeid ministry, a cloud remains over the approvals process, arising from the findings of the state's Independent Commission Against Corruption.
Mr Buckingham has called for a broader inquiry into all exploration licences issued by the former Labor government and a review of the Mining and Petroleum Acts, after ICAC released its damning report recently that found the allocation system had "so many risks and opportunities for corruption, it was almost inevitable that corruption would occur at some point".
The government deserves some sympathy for inheriting a dreadful mess from years of Labor rule. Given the billions spent in development by Newcrest and other miners it would be too disruptive to put a decade of mining and exploration leases up for tender again.
Yet overriding the courts by stealth - and with a quick-fire scare campaign on job losses - is hardly the answer. Debate on the bill was deferred, and when it returns there should be some debate on "root and branch reform", as Mr Buckingham puts it, so that business can begin to have some faith in the state's approval process.
Frequently Asked Questions about this Article…
Newcrest Mining faced a legal challenge regarding the validity of its mining leases at the Cadia goldmine in NSW. The NSW government attempted to pass retrospective legislation to end the lawsuit, but it was blocked by Greens MP Jeremy Buckingham.
The NSW government proposed the Mining Amendment (Development Consent) Bill to end a lawsuit against the government and Newcrest over mining leases at the Cadia goldmine. The bill aimed to address issues stemming from previous government actions and prevent potential job losses.
Greens MP Jeremy Buckingham played a crucial role by opposing the NSW government's attempt to pass the Mining Amendment Bill quickly. He argued that the government was trying to cover up past mistakes without proper reform and called for a broader inquiry into exploration licenses.
The legal challenges, particularly a decision by the NSW Land and Environment Court to quash an exploration license held by Newcrest, negatively impacted the company's share price, causing it to drop.
The Cadia goldmine is significant for Newcrest Mining as it is Australia's largest underground mine, containing approximately $200 billion in gold. Newcrest has invested $2 billion in its development, making it a crucial asset for the company.
Concerns were raised about the NSW government's attempt to pass the mining legislation quickly and without proper debate. Critics argued that it undermined the judiciary and was a reactionary measure to cover up past government mistakes rather than implementing meaningful reform.
The NSW Land and Environment Court quashed an exploration license held by Newcrest, which was a significant legal setback for the company and contributed to the ongoing legal challenges it faced.
In response to the mining legislation issues, broader reforms have been suggested, including a comprehensive review of all exploration licenses issued by the former Labor government and a review of the Mining and Petroleum Acts to address corruption risks and improve the approval process.